Will I have to endure a year of debt?

<p>I'm just going to keep this short and simple. My dad's 2011 tax returns claim that he makes $115K/year. However, this month my dad could potentially lose 65% of his salary, which would obviously have detrimental affects on my household income. Basically, I'm assuming I won't be receiving much financial aid based off of my dad's 2011 tax returns (I'm a senior and I've already applied to all my schools and for financial aid/FAFSA). Is there anyway to inform the school of my new situation God forbid my father actually loses such a substantial amount of income? It would be awful if I had to deal with large tuition costs with my parents only making $60K/year combined... :(</p>

<p>I would call each of the schools that you applied to and find out how they would deal with this type of situation. Just call the fin aid office and ask to speak the the officer who has your file. I know last year we had a similiar concern, I called Duke and they said that they would only look at the paperwork on hand. If there was a hardship situation like yours then you had to wait for the next year, before they would reassess the situation. So we were going to have to get by for that year. I’m not sure how other schools would handle it. Call. Find out and pray that things don’t take a turn for the worse. Good luck.</p>

<p>If his income actually changes, you could present that change with documentation to the schools & they may correct it, especially ( IMO) if the school meets 100% of need.</p>

<p>However if the school gaps, you may not be eligible for additional aid depending on when his level of income changes.</p>

<p>It is to your advantage to have this info before you need to choose a school-although I am assuming you have some affordable choices, or is this potential development a surprise?</p>

<p>Most of my school cost $50K/year, besides PennState. But I refuse to go there…</p>

<p>^^^^
Why?
10 char</p>

<p>Why would you apply to a school where you wouldn’t attend?</p>

<p>The schools will not make an adjustment for a POTENTIAL loss of salary. As EK4 said, once it happens you can see about getting an adjusted FA. Would your father look for a new job if his income went down that much? That’s one question the FA office will ask.</p>

<p>And why would you apply to a school that you are not willing to attend? Why only $50K+ schools?</p>

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<p>The key word is “potentially”…this has not yet happened and might not happen. Most colleges also do not make an immediate adjustment to financial aid as they anticipate that folks will look for other jobs.</p>

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<p>Yes it would be awful…so why wouldn’t you consider a school with a more reasonable cost if there is this possibility.</p>

<p>You do NOT mention the CSS Profile in your OP at all. That being the case, your $50K schools likely do not meet the full need of accepted students. </p>

<p>You need to discuss the realities of your family’s financial situation with your parents. Since they will be funding your college costs, you need to know any considerations regarding finances BEFORE you make a matriculation decision.</p>

<p>If the money doesn’t come through for you, you may need to consider a gap year. You have good stats but it looks like (from other posts) that all of your schools besides Penn State are going to cost you a lot.</p>

<p>There are a number of schools where you could have received merit aid to help lessen the financial impact for your family. You didn’t choose those schools.</p>

<p>At this point, you just have to wait and see if the money is sufficient for you to attend these schools along with whatever your family can contribute.</p>

<p>If not…have a plan B.</p>

<p>I applied to PennState because my parents forced me to…and I’m hoping that the schools I applied to are generous with financial aid. Most of them are top-tier with large endowments, so hopeful they pull through. Thanks for the help guys! :)</p>

<p>You can hope but be prepared… Also, you can’t just borrow your way into a school. Your limit is $5,500/year. The rest your parents have to cosign – it also depends on their credit worthiness.</p>

<p>You won’t be dealing with debt as you can only assume the Federal Direct Loan which is $5500. Your parents will have to assume the debt as co-signers and most parents would tell you no. Make sure you are CLEAR about what they are willing to spend/afford. Getting INTO a college is only 50% of the battle the other half is whether your family can afford that college. Best of luck!</p>

<p>crossposted.</p>

<p>Shools do not expect your parents to be paying out f current income Lone. They Ssume they have saved and will borrow. So don’t expect even the most generous, high endowment schools to overlook last year’s income, that’s wht they base your first year aid on. If your dad loses that income for a year, you could get more for your soph year.</p>

<p>I’m sorry, but I’m not understanding a word you guys just said. Don’t people take out loans to pay for school? Are you saying the most I can get for any loan is $5,500?</p>

<p>What people are saying that the most you can get on YOUR OWN is $5500. The rest will have to be borrowed by either your parents or you with a cosigner.</p>

<p>^^ Which is why you need to have a discussion with your parents and understand how much they are willing to pay for your college, they may not be willing to take out loans for you or co-sign with you.</p>

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<p>Yes…that is exactly what we are saying. Students can take out the Stafford loans (and Perkins loans if they qualify for them) without a cosigner. These are in the student name ONLY. Stafford loans are $5500 for freshman, $6500 for sophomores, $7500 for juniors, $7500 for seniors. </p>

<p>If you get a Perkins loan (reserved for students who are lower income at your school), those are usually not more than $3000 for the year.</p>

<p>Any loans above and beyond these amounts would be loans that would either be Parent Plus loans or some other loan taken by your PARENTS…or a loan taken by you but COSIGNED by your parents. </p>

<p>As a student, you do NOT have the collaterol to secure a loan on your own. Banks want to be sure that loans are given to those with either sufficient income OR sufficient assets in the loan holders name. The banking industry got in a lot of mess a few years ago for offering loans to folk who really should not have qualified for them. The banking industry has gotten much more careful about granting loans.</p>

<p>As a student, you will either need a cosigner or your parents would need to take out the loans above and beyond the Staffords/Perkins.</p>

<p>You need to discuss this with YOUR parents. </p>

<p>I will tell you MY opinion…I would NOT cosign a college loan for either of our kids.</p>

<p>I’m pretty sure my parents would cosign it. I don’t think they want me to not go to college…and I’m not going to attend a cheap community college or state school. That’d be a waste of my mind.</p>

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<p>I won’t comment on this except to say that the COST of a college does not necessarily correlate with the use of your mind.</p>

<p>If your parents will cosign loans and will qualify to do so for all four years…then you have no problem…except amassing debt for someone.</p>

<p>OP,</p>

<p>Then your problem is solved. Just be prepared that after your graduation you will be wasting your best years trying to pay off that student loan you are so willing to take.</p>

<p>Before you commit to that loan, perhaps you should figure out what your monthly payment is going to be.</p>